The car subscription provider FINN has announced the closing of its Series C equity funding round of €100 million. The round was led by Planet First Partners, a European growth equity sustainable investment platform. In addition, existing investors reaffirmed their confidence in FINN and participated strongly in the new funding round, including HV Capital, Korelya Capital, UVC Partners, White Star Capital and Picus Capital. The round increases FINN’s valuation to more than 600 million US dollars.
The Munich-based company will use the capital to accelerate growth in the electric car sector, with the goal to more than double the share of low-emission vehicles in its fleet from 40% to over 80% by 2028. FINN’s car subscription model is contributing to the adoption of electric mobility by offering customers the opportunity to use electric cars flexibly in their everyday lives – without risks such as technological obsolescence or the development of residual values associated with ownership.
Last year, FINN was able to further grow in its markets and hit the milestone of €160 million in Annual Recurring Revenue (ARR) with over 25,000 active subscriptions. One of the most important growth drivers was the B2B fleet business, which is now accountable for half of the ARR. The Series C round follows a corporate debt transaction with Atempo Growth conducted at the end of last year.
“To achieve international climate targets, the shift to electric mobility has to be significantly accelerated over the next few years. After years of lack of production, the vehicles now need to be brought into the market. Our full-service and carefree subscription model is the perfect accelerant – for consumers and companies alike,” said Maximilian Wühr, CEO and co-founder of FINN. “With the new capital from Planet First Partners and the strong trust of our existing investors, we will expand our sustainability strategy significantly. We will double the proportion of electric vehicles in our fleet in the coming years and accelerate our growth through the e-mobility transition.”
Founded in 2019, FINN customers have been able to subscribe to a car from over 30 brands and hundreds of models in just a few clicks. The car is delivered directly to their doorstep in just a few days and comes with an end-to-end carefree package, including insurance, financing, registration, taxes and maintenance. FINN expanded to the east coast of the USA in 2022.
Nathan Medlock, Managing Partner at Planet First Partners, added: “The transition to electric vehicles is one of the major societal shifts taking place globally and is crucial in our move towards a more sustainable economy. With road transport accounting for around one-sixth of global emissions, electric vehicles are vital to decarbonize society. FINN’s easy-to-use subscription model offers an innovative solution to assist consumers in making the move to electric vehicles and reducing their own carbon footprint.”
Nathan Medlock will join FINN’s Board. Planet First Partners is classified as an Article 9 fund under the European Union’s Sustainable Finance Disclosure Regulation (SFDR). This means that the fund invests in line with strict guidelines, according to which portfolio companies must significantly contribute to sustainability goals. FINN aims to foster sustainable mobility for people and the planet by already having over 40 percent of low-emission vehicles, such as fully electric cars and plug-in hybrids, and by supporting climate protection projects. Planet First Partners’ investment will be used exclusively for growing the electric vehicle fleet.
Read the orginal article: https://www.eu-startups.com/2024/01/munich-based-finn-tows-in-e100-million-series-c-to-accelerate-its-shift-towards-a-fully-electric-fleet/
